Risk averse investor it generally means that we dont

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Risk-averse investor It generally means that we don’t like to take risks, or we are comfortable taking only small risks. When applied to investing behaviour, the meaning changes slightly and it can actually be damaging to our ability to produce the best returns over time. In investing terms, risk the chance of permanent loss of capital. The higher up the risk profile an investment is, the higher the likelihood that you will permanently lose money. Most commonly, being risk averse investor clearly benefit from diversification. Diversification Diversification enable us to reduce the risk of our portfolio. By diversified our stocks such as we had invest our capital funds into different classes of stock from different sectors such as buying Large- cap stocks to Small-cap stocks. Some of the stocks that we invest in is KLCC REIT and Dutch Lady Milk Industries. During Inflation period, stocks from property sector seems to increase in price while consumers products also able to survived in result, those stock prices won’t be fluctuate much. Simply stated, diversification results when you spread your investable funds across different classes of asset. By chance some will do well when others do poorly, thus it will reduce overall variability such as risk of our portfolio. Low, High risk investment Typically, a low risk investment has a low amount of upside. On the other hand, a high risk investment has high amount of risk and usually a high potential reward. It is important to mention that any assets has some degree of risk, no matter how low risk it may seem. The degree of risk is measure by company’s performances and variance, the higher the variance, the higher the risk. Conclusion
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Our main objective investment is for the future savings and emergency purposes. As for that, we as a new investors aiming that the potential return we could gain is 10% from the capital funds but nevertheless we only earn 4% from the investment. We could say this is a successful investment because we are able to make a return even in a least amount. There were a few factors that may affect our investment strategy and most are related to economics factors that has been arise such as fallen of crude oils price and Ringgit Malaysia. As far we know, crude oils is main commodities of our country therefore, fallen of price in crude oils may give a major impact to our economics. Moreover some political issues that has happened also indirectly contributed to the reasons of fluctuation in market price. All those factors mentioned above, somehow make investors hesitate to invest in stocks market. In a conclusion, we learnt from the previous mistakes that we had done. To increase your odds of making money, don’t try to catch a falling knife. Instead, it is much safer to grab that knife once it hit and settled a bit. In other words, don’t buy a stock that is going down, instead, buy something that has started going up.
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